Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Has Silver Bottomed?
April 4, 2022 - (Gold Market Wire) - It has been a frustrating time for Precious Metals traders, no doubt. But we may be approaching a 'clearing' in the forest. We submit:
When we review the past three weeks, standing back for the big picture look, things become a bit clearer. Our power uptrend failed, bounced, and then sold off. That's all as it should be really. The failure produced a sharp sell-off, but, importantly, we never made it to a close below $24.70. In our book that's important. The exception was last Friday...April Fools' Day. Well, who says COT doesn't have a sense of humor?
Yes we have called the horizontal at $24.50, because the round 50-cent figures have been important over the past six months, especially for theshort-term outlook. But if we pull back to the January high, in the chart above, we get a slightly modified picture. (Truthfully - take your pick. - .50 or .70. In the game of Silver abroad brush is usually best.)
With a broader view, the March 29, intra-day sell-off looks like a classic flushing of weak hands. The take-away? The horizontal is working better than the trend line - for now. 14 out of 15 closes above the horizontal marker??? We will have to call that a temporary bottom. Let's see if can continue the streak.
At the risk of sounding optimistic in what has been a very frustrating three weeks - we may have just finished the correction in Silver. Length has been held throughout. The sustaining of $24.50, as we noted previously, has prevented us from having to ruminate on a cut of length... and has re-affirmed why it is important to wait for closes, before cutting. March 29 looks like just the cutting of scalps that indicates a move up getting ready. The ride down was no fun at all - but this is Silver, after all, and to be expected.
Trading Metals is never easy - as they say.